Road To Redemption

What a charge. Never in the modern history of stock markets has there been a greater advance. This historic recovery and stock advance brings tears to my eyes. I guess after thirty years of playing the stock market and taking it in the shorts on several pump and dump bull markets you can’t help but get choked up when you see the courage of the Wall Street bankers bringing back our symbol of economy and financial prowess. Come on now be serious….admit it…. it makes ya proud doesn’t it?? Just a little?? No?? Not even a little huh? Well…you can’t say they haven’t tried. I guess when they did God’s work and Goldman alone shoved 28Billion in their 2009 X-mas stockings you probably had an idea that things just weren’t quite kosher with the recovery. Of course those record bonuses the year before when the market crashed probably were still sitting sour on your tummies.

Only an illiterate has an excuse now after the last three years. This game is very clear. We are in decline. Its really not complicated. We have been at the party way to long living on a liquidity created by one of the most wicked financial weapons ever constructed….the fiendish mathematical derivative created by a diabolical group of mathematicians after a week long acid binge in the 70′s. Michael Milken began exploiting some of their benefits in the 80′s giving it a nice test run for the PTB before running afoul of the wrong prosecutor. There were a few hiccups along the way but once their potential was realized by the ponzi masters then the OK was given to release the Kraken on a dying empire. I like to give an analogy of trying to imagine giving the wounded Spartans at Thermopylae on the eve of the final Persian attack eight rocks apiece of crack cocaine. After they wiped out the Persians then what was left of the Three Hundred could have paddled boats across the Aegean in an hour and wiped there way across Turkey and Persia……probably could have taken over it all in a few days. Of course they would wind up Charlie Sheened, but hey….it was funs while the party lasted.

Yes indeed its that downer after the party is over. Its that Charlie Sheen effect that gets ya every time. Sure you had a multi-decade bender but now you have to pay the piper and that is just something that isn’t quite what you had in mind. Or is it? Alas that is a different essay. For now we just are talking about the toot that is keeping the “big binge” from going completely Charlie Sheen. Make no mistake we ARE going there too. Its just that time needs to be bought while some “arrangements” are made.

We should keep this in a range with run up into the end of QE. Right now the Biotechs and energy remains in play. Watch for the sector rotations. I am in mostly cash here with a cloudy crystal ball. Wasn’t that silver move amazing?? Gold’s still has a target of 1600 sitting out there…the 1520 is about over with isn’t it? The miners could get a real nice run going into the the next few weeks.. I’d like to see a pullback on the Stochs and RSI first but hey….wishin and gettin are two different things. HUI has totally underperformed the metals. Watta scam…..but ya play the cards you’re dealt in this casino. There aint no other!

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